The Impact of Innovation on Consumers' Behavior

Introduction

As innovation is now a competitive requirement for marketers, which is having an important role on modern organizations; all the firms worldwide are promoting it on their business operations. In this paper I'll explain what online marketing strategy organizations use to make changes in order to survive in this high competitive environment. My goal on this theme is to observe how a specific online marketing strategy, like innovation, influences on consumers' behaviour. Innovation is one of the primary tools that organizations use to be able to positively effect consumers' buying behaviour and entice more customers. To better understand technology and the role that this has on a business I will first determine it and then bring a genuine example from a well-known company and describe the techniques the corporation uses in order to promote technology. The company I choose to investigate is Google since it is consider as being both a successful and progressive company in a short period of your energy. By many studies and surveys conducted the world's most progressive companies today are believed to be Apple Computer, Yahoo, Toyota Electric motor, and Microsoft with Apple the very best innovator. (James P. Andrew, 2006, p. 4)

Brief Explanation of this issue and the Position I've taken

Nowadays organizations are working in a solid economic turmoil. Competition is now intense from day to day and companies are rarely trying to draw in new customers and also wthhold the existing once. Overall economy leads to uncertainty of the employees and employers and in this example the companies are requiring a higher resistance of change to be able to survive. The marketing section and consumers are the primary tools along the way of organizational change, collaborating with customers would be the key for his or her success. Matching to Peter and Olson 2010, "understanding consumers is a crucial element in developing successful marketing strategies. " (p. 13)

The position i ingest this paper is supporting the utilization of technology in companies. I feel that innovation influences favorably to consumers, and I am in favor of promoting creativity in companies as it has a strong effect on consumers' buying patterns. Innovation will make the products more attractive for consumers, and they will be more interested to try them. Regarding to James P. Andrew, 2006, creativity today remains the top strategic focus for many companies where 72% of the professionals have placed it as the top-three tactical priority in the company importance for influencing consumers' behaviour. The same percentage of professionals said that they will increase shelling out for invention in the coming years as they understand it as the most important tool for surviving in this turbulent business environment that is established today. Campaign of technology in a company should be developed in a way that it helps marketing strategies and consumers' needs and wishes.

Innovation as a Marketing Strategy

Traditionally invention is thought as the creation of services and services for clients or also for existing once, it also refers to the improvement of existing products to be able to attain cost decrease. In his article for creativity, Buxton, 2005, points out that the degrees of innovation and imagination in a company can be improved with the correct management and group as they are not blessed with people but are developed through the work experience that people make. For Buxton invention in an organization "is far more about prospecting, mining, refining and adding value to 'yellow metal' than it is approximately alchemy. Rather than concentrating on the technology of the 'brand new', one might better strive for creative insights about how to combine, develop and leverage what's already out there, but concealed, or not realized. " (William Buxton, 2005, p. 1) Rogers, 1998, p. 6 clarifies that the highly impressive firms would be expected to have higher ratio of sales compared with firms that make new or improve products.

It is vital that executives in a business have innovative ideas and make clear to others how important development is to the future of the company. The complexity and turmoil of today's business requires a strong give attention to advancement and also in the way of thinking differently for companies to be different from others and make an effort to survive on the marketplace by attracting clients. Being a company innovator Buxton says that "it isn't enough to simply have great ideas. If you wanted the ideas to come to fruition, you'd to spend as much time directing your innovation and creativity to fostering a culture of creativeness and receptiveness to creativity within the company, as you may spend on the ideas themselves. " (William Buxton, 2005, p. 2)

So, we can say that progressive activity requires a strong cooperation from all the components of the firm. In order to promote creativity for a company it is very important the use of new technology, which allows the business to be more competitive on the market and act in response in a faster way to the market needs.

Defence of my Position: Why Companies Should Invest on Invention?

As it is described on James P. Andrew article 2006, as we have discovered on MBA classes, companies across the world practice technology with a primary and primary aim which is a fast development and success on the market. Others say that making an investment on innovation is the greatest practice to eliminate the chance of the business. "There is absolutely no single best organizational structure for invention. Indeed, nearly every company, regardless of size, shape, culture, or hierarchical structure, can be innovative. " (James P. Andrew, 2006, p. 22)

There will vary marketing strategies that marketers can effect consumer action and increase their probability of purchase. Corresponding to Peter and Olson (2010) the first strategy utilized by marketers is "obtaining home elevators consumers' have an effect on, cognition, and tendencies relative to the merchandise, service, store, brand or style of concern through consumer research. " (pg. 232) Predicated on the info received from the buyer research data marketers design different marketing blend stimuli, one which is invention. Research and Development is recognized as the most important impressive tool for companies, and most of the companies around the globe are spending most of their moneys on R&D as they think that it's the easiest way on helping the firms on cost savings and enhances their capability to develop products and services which will be attractive for customers. (James P. Andrew, 2006, p. 3) Product design and idea era are very important in keeping customer devotion and having higher sales than when companies are focusing only on the financial area.

I support the investment on invention because from the articles I continue reading this topic, the top innovative companies mentioned previously, which have highly invested on invention; have gained customer trust, better quality, a much better organizational culture, and a long-term customer relationship. These features that the companies gain from the creativity strategy are the most important once for the positive affect on consumer behaviour and then for the economic development of the company. Regarding to Muller et. al. 2004, today investment in advancement projects is as part of your important because it helps the companies to develop new businesses, create clients and maintain the old once, creates new market entrants, shortens product life circuit and helps the companies to keep competitive advantages. So, even if companies spend some money on promoting the development, for them shouldn't be considered as a problem because they will gain this money in a brief period of the time, and beside this they will also gain a good reputation which is considered as the most important asset a company can have.

How Google Promotes Innovation

"Google's mission is to arrange the world's information and make it universally accessible and useful. " (Iyer, 2008, p. 3) Yahoo is considered to be always a company which is very successful and at the same time is ranked the next company after Apple on the world's most progressive companies. But how can this head company in its industry promote advancement as the key of its success? Iyer 2008, on his article has considered Yahoo as being an "invention machine" as it's been considered as the creator of new approaches to business and management innovation by using the best technology and committing plenty of money, a strategy that allowed the business to develop invention in a brief period of your energy. What mostly matters because of this company, are the new ideas and new products that Yahoo announces every day and not the financial revenue that it makes. Iyer, 2008, further talks about that this creativity strategy that Google has used allowed it to truly have a rapid growth on the market, a huge product development, to become more satisfied and determined and to have better customer interactions.

The key success for the company's creativity strategy are its makers, independent software distributors, Google engineers and available source community who by collaborating jointly "make up a diverse product development network, develop new offerings that keep consumers indulge, generate revenue and expand value of Google's tools and technology. " (Iyer, 2008, p. 5) The strategy on innovation promotion has worked perfectly on Google, and it offers produced many services and features that have positively affected on consumer behavior. Another strategy that Google has applied to promoting technology is the estimation on time of market changes and the offer of the new products and services quickly than other businesses. So, we can easily see that Google's strategies to technology are unique, and they have allowed the company to catch the attention of the most talented employees and engineers and a lot of satisfied consumers. So, looking how consumers react to technology from the above examples, I strongly protect my position on using technology as a confident marketing strategy.

The Other Part of the Coin: People who don't Accept Buying Innovation

Different companies use different methods and tools to promote invention, and with the duration of time all companies improve their methods of innovating as new things come out very quickly. But not all companies recognize creativity as a marketing strategy to get more customers. Some think that it is costly while other don't have the right resources to market it. Once we can see on the article of Muller et. al. 2004, some companies that cannot innovate independently have spent more by purchasing innovation in order to survive, Coca-Cola received Mad River Merchants, which is a market of alternate drink, but this is a strategy that costs more to the companies than when innovating together, and they don't prefer using it. For a company it is very important to have money and spend money on order to market innovation. Rogers's article explains that investment in new machines, marketing expenses, investment in training and the purchase of new technology are considered as the main field of investment which help the company to market invention. Many companies don't possess the money, and many more don't possess the right employees to push the company promote invention. Muller et. al explains that the main things that promote technology in a firm are the amount of capital invested on it, the ability which will be the employees, and the time that is focused on technology strategies. May companies don't support the investment on innovation due to insufficient capital.

In order to succeed in an innovation task it is vital that professionals and employees of the company should make an exercise and research in advancement. They should be able to estimate the potential market for the new idea, what development tools are necessary for an innovation strategy and what methodologies should be accessible to the employees. Especially in todays' economic crisis, the majority of the companies don't purchase training and R&D for development; they prefer to spend them in other areas. Other difficulties that companies face when they make an effort to become innovative are, "globalization, organizational issues (such as metrics and dimension, structure, and people), and management continue to be three of the largest obstacles facing companies that are seeking to become more progressive. " (James P. Andrew, 2006:4) But, based on the data and example I gave above I think that their position on this topic is not good. Comparing the positive and negative sides of innovation it includes more positive once as it satisfies more its customers and favorably influences on their buying behaviour.

Conclusions

Concluding my paper I could say that based on what I investigated on advancement, and the knowledge's I had on Consumer Behavior and ONLINE MARKETING STRATEGY lessons, I've learned that advancement and its promotion in a corporation improves a great deal business processes giving to the business cost advantages, quality advantages, and consumer satisfaction which are the key performance objectives that allow a good procedure strategy in any organization. Today all the companies are taking advantage from the new systems and innovation in order to be the leaders of the market and also to gain the highest market talk about by attracting more customers.

So, as the result of this extensive business environment and high availability of information system, the company should frequently redesign and innovate in order to achieve improvement because of their future operations and to be at top levels in the market where it operates. Before starting to implement an efficient innovation promotion in an organization it is very important for people who will guide it to contemplate it from the financial point of view, users view and also from opportunities that the technology system will give for development in the foreseeable future. I've also found that after the execution of the invention system for even more succeeds it is very important for the company to make constant control and improvements of it and to have an increased collaboration between your innovation promotion and all the departments of the business where advancement will be marketed. An excellent customer relationship is also very very important to the implementation of the best online marketing strategy, as customers will be the once whose need will be satisfied with the creation of the merchandise.

When developing technology a company should begin by analyzing the behavior of its consumers and developing the best marketing strategies that will fit their needs. As described by Peter and Olson (2010) "marketers have to analyze and understand not only consumers with their products and brands but also consumers of competitive offerings and the reason they purchase competitive products. " (p. 13) Through consumer research, marketers obtain home elevators consumers' affect, cognition and habit based on the merchandise or service they will produce. Understanding consumers help in producing successful marketing strategies, as the execution of the right marketing strategies makes possible the increase of chances that consumers will have positive thoughts about the product or service, and can regularly purchase them.

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